GL GLOBA BAL L EN ENVI VIRO RONMENT NMENT Lecturer: Chandana - PowerPoint PPT Presentation

MA MANAGING GING IN A A GL GLOBA BAL L EN ENVI VIRO RONMENT NMENT Lecturer: Chandana Fonseka

“Time has come for managers to think globally” Eventhough there are distinct geographical boundaries, there are no boundaries electronically among countries

GLOBALISATION • Gl Globa obali lizat zation on ca can be be defi efined ned as as the the gr growing wing int nterdependen ependences ces of of countr countries worl rldwi wide. It refers to the extent to which the following are shared among countries: – Cross border transactions in goods and services  International trade – Free international capital flows  Investment sharing – Social and cultural idea  Cultural sharing – Spread of technology  Techno transfer – Political corporations

20/6/2016 20/6/2016 GDM GDM M 401 PB: HDM M 401 PB: HDM

Ref Page 108 Getting Started Internationally Locally produced items are traded in overseas 1. Exporting markets Work activities are done in overseas 2. Outsourcing countries – use the advantage of cheap labour

Ref Page 108 Getting Started Internationally One country uses certain resources such as 3. Licensing technology, managerial skills, patents, etc. in another country (Franchising is a type of licensing) 4. Direct investing

Factors Driving Globalization

Factors Driving Globalization  i.e. Inter-depending  Development of Technology (e.g. transportation)  Improved communication  Political realignments (e.g. EU)  Specialization (E.g. Saudi oil)  Efficiency and lower costs  Choices (e.g. Cosmopolitanism consumers)